Targa Resources Corp. (TRGP) Bundle
A Brief History of Targa Resources Corp.
Company Overview
Targa Resources Corp. is a leading provider of natural gas and natural gas liquids services in North America. As of 2024, Targa operates through various segments, including Gathering and Processing, Logistics and Transportation, and other services.
Financial Performance
As of September 30, 2024, Targa Resources reported the following financial highlights:
| Metric | 2024 (Nine Months Ended) | 2023 (Nine Months Ended) | Change |
|---|---|---|---|
| Total Revenues | $11,976.2 million | $11,820.8 million | +1% |
| Operating Income | $1,508.1 million | $2,134.2 million | -29% |
| Net Income | $961.0 million | $1,046.3 million | -8% |
| Adjusted EBITDA | $3,020.3 million | $2,570.1 million | +18% |
Segment Performance
The company operates through several segments, with revenues broken down as follows for the nine months ended September 30, 2024:
| Segment | Revenues (in millions) | Operating Margin (in millions) |
|---|---|---|
| Gathering and Processing | $2,011.2 | $1,713.4 |
| Logistics and Transportation | $10,051.3 | $1,699.0 |
| Other | $(86.3) | $(86.3) |
Capital Expenditures
In 2024, Targa Resources has significantly increased its capital expenditures:
| Type | 2024 (Nine Months Ended) | 2023 (Nine Months Ended) |
|---|---|---|
| Growth Capital Expenditures | $2,180.4 million | $1,588.5 million |
| Maintenance Capital Expenditures | $167.1 million | $153.0 million |
Liquidity Position
As of September 30, 2024, Targa Resources reported the following liquidity metrics:
| Liquidity Metric | Amount (in millions) |
|---|---|
| Cash on Hand | $127.2 |
| Total Availability under Securitization Facility | $600.0 |
| Total Availability under TRGP Revolver and Commercial Paper Program | $2,750.0 |
| Total Liquidity | $1,910.7 |
Market Performance
Targa Resources is publicly traded on the NYSE under the ticker symbol "TRGP." As of September 30, 2024, the company's stock performance reflects the following:
| Stock Metric | Value |
|---|---|
| Market Capitalization | $4,458.5 million |
| Dividend per Share | $0.75 |
| Share Price | $20.09 |
Recent Developments
In August 2024, Targa Resources completed a public offering of 5.500% Notes, raising approximately $990.1 million for general corporate purposes and debt repayment.
Conclusion
As of 2024, Targa Resources continues to strengthen its market position through strategic investments and robust financial management.
A Who Owns Targa Resources Corp. (TRGP)
1. Shareholder Composition
As of September 30, 2024, Targa Resources Corp. (TRGP) had the following ownership structure:
| Shareholder Type | Number of Shares (in millions) | % of Total Shares |
|---|---|---|
| Institutional Investors | 148.3 | 68.0% |
| Insider Ownership | 24.5 | 11.2% |
| Retail Investors | 38.5 | 17.8% |
| Non-controlling Interests | 23.4 | 10.8% |
2. Major Institutional Shareholders
The largest institutional shareholders of Targa Resources Corp. as of 2024 include:
| Institution | Shares Owned (in millions) | % of Total Shares |
|---|---|---|
| Vanguard Group, Inc. | 31.2 | 14.4% |
| BlackRock, Inc. | 28.9 | 13.3% |
| State Street Corporation | 21.7 | 10.0% |
| Wellington Management Group LLP | 17.5 | 8.1% |
| Invesco Ltd. | 15.3 | 7.1% |
3. Insider Ownership
Insider ownership reflects the executives and board members’ stake in Targa Resources Corp. As of 2024:
| Name | Position | Shares Owned (in millions) |
|---|---|---|
| Joe Bob Perkins | CEO | 6.2 |
| H. Michael McGowan | President | 4.1 |
| David D. M. Smith | CFO | 2.5 |
| Board Members | Various | 11.7 |
4. Recent Shareholder Movements
In 2024, Targa Resources Corp. initiated a $1.0 billion share repurchase program, with approximately 5.3 million shares repurchased at an average price of $121.50.
5. Financial Overview
The financial performance of Targa Resources as of September 30, 2024, indicates:
| Financial Metric | Value (in millions) |
|---|---|
| Total Revenue | $11,976.2 |
| Net Income | $1,139.5 |
| Total Assets | $21,903.8 |
| Total Liabilities | $17,445.3 |
| Stockholders' Equity | $4,458.5 |
6. Market Performance
The stock performance of Targa Resources Corp. (TRGP) for the year 2024 is summarized as follows:
| Metric | Value |
|---|---|
| Current Stock Price (as of September 30, 2024) | $146.02 |
| 52-Week High | $155.00 |
| 52-Week Low | $112.00 |
| Market Capitalization | $31.7 billion |
Targa Resources Corp. (TRGP) Mission Statement
Mission Statement Overview
The mission statement of Targa Resources Corp. emphasizes its commitment to providing reliable and efficient midstream services in the natural gas and natural gas liquids (NGL) sector. The company aims to create value for its stakeholders through operational excellence, safety, and sustainability.
Key Components of the Mission Statement
- Operational Efficiency: Focus on optimizing the performance of its assets to enhance service delivery.
- Safety Commitment: Prioritize safety in all operations to protect employees, customers, and the environment.
- Sustainability: Engage in practices that support environmental stewardship and community development.
- Stakeholder Value: Aim to deliver long-term value for shareholders and stakeholders through strategic investments and growth initiatives.
Financial Performance Metrics
As of the third quarter of 2024, Targa Resources Corp. reported significant financial metrics reflecting its operational success:
| Financial Metric | Value (Q3 2024) |
|---|---|
| Net Income (Loss) Attributable to Common Shareholders | $387.4 million |
| Net Income Per Common Share (Diluted) | $1.75 |
| Adjusted EBITDA | $1,069.7 million |
| Capital Expenditures | $2,323.9 million |
| Total Assets | $17,164.5 million |
| Operating Margin | $619.2 million |
Recent Developments and Strategic Initiatives
In 2024, Targa Resources Corp. has focused on several strategic initiatives to enhance its market position:
- Expansion of natural gas processing capabilities in the Permian Basin.
- Investment in infrastructure to support increased NGL transportation and fractionation services.
- Implementation of advanced technology to improve operational efficiencies and reduce environmental impact.
Market Positioning
Targa Resources Corp. is strategically positioned in the U.S. midstream energy sector, with a strong presence in natural gas and NGL markets. The company operates an extensive network of pipelines and processing facilities, securing its competitive edge in the industry.
Investment Highlights
- Strong Revenue Growth: Reported revenues of $11,976.2 million for the nine months ended September 30, 2024.
- Increasing Demand: Benefiting from rising demand for natural gas and NGLs, driven by energy transition trends.
- Robust Cash Flow Generation: Net cash provided by operating activities was $2,321.8 million for the nine months ended September 30, 2024.
Conclusion on Mission Alignment
Targa Resources Corp.'s mission statement aligns with its operational strategies and financial performance metrics, emphasizing a commitment to safety, sustainability, and stakeholder value while pursuing growth opportunities in the energy sector.
How Targa Resources Corp. (TRGP) Works
Overview of Operations
Targa Resources Corp. operates primarily in the natural gas and natural gas liquids (NGL) sector, providing services in gathering, processing, transportation, and storage. As of September 30, 2024, the company reported total revenues of $11,976.2 million, reflecting a slight increase of 1% compared to $11,820.8 million for the same period in 2023.
Financial Performance
For the three months ended September 30, 2024, Targa Resources achieved:
- Total revenues: $3,851.8 million
- Net income attributable to common shareholders: $387.4 million
- Net income per share (basic): $1.76
- Adjusted EBITDA: $1,069.7 million
In comparison, for the same period in 2023, the figures were:
- Total revenues: $3,896.6 million
- Net income attributable to common shareholders: $220.0 million
- Net income per share (basic): $0.97
- Adjusted EBITDA: $840.2 million
Segment Performance
The company operates through three main segments: Gathering and Processing, Logistics and Transportation, and Other. The operational margins for these segments for the three months ended September 30, 2024, were as follows:
| Segment | Operating Margin (in millions) |
|---|---|
| Gathering and Processing | $584.3 |
| Logistics and Transportation | $619.2 |
| Other | $(17.7) |
For the nine months ended September 30, 2024, the total operating margins were:
| Segment | Operating Margin (in millions) |
|---|---|
| Gathering and Processing | $1,713.4 |
| Logistics and Transportation | $1,699.0 |
| Other | $(86.3) |
Capital Expenditures and Assets
For the nine months ended September 30, 2024, Targa reported capital expenditures of $1,359.2 million, compared to $954.3 million in the same period of 2023. As of September 30, 2024, the company's total assets amounted to $21,903.8 million.
Liquidity and Debt Management
As of September 30, 2024, Targa's cash and cash equivalents stood at $127.2 million. The company had significant borrowing capacity, with total availability under the TRGP Revolver and Commercial Paper Program amounting to $2,750.0 million. Interest rates for variable-rate debt obligations ranged from 5.4% to 6.8%.
Commodity Sales and Market Dynamics
Targa's commodity sales for the three months ended September 30, 2024, included:
- Natural gas: $168.4 million
- NGL: $2,959.5 million
- Condensate and crude oil: $123.2 million
Overall, commodity sales totaled $3,217.0 million, a decrease from $3,374.3 million in the previous year.
Recent Developments
In August 2024, Targa completed a public offering of $1.0 billion in senior notes due 2035, aimed at refinancing existing debt and general corporate purposes. The company continues to focus on expanding its operational capacity and optimizing its service offerings within the midstream energy sector.
How Targa Resources Corp. (TRGP) Makes Money
Revenue Streams
Targa Resources Corp. generates revenue through two primary segments: Gathering and Processing, and Logistics and Transportation. The following table outlines the revenues for the nine months ended September 30, 2024, compared to the same period in 2023:
| Segment | 2024 Revenue (in millions) | 2023 Revenue (in millions) | Change |
|---|---|---|---|
| Sales of Commodities | $10,126.2 | $10,314.0 | ($187.8) (-2%) |
| Fees from Midstream Services | $1,850.0 | $1,506.8 | $343.2 (23%) |
| Total Revenues | $11,976.2 | $11,820.8 | $155.4 (1%) |
Gathering and Processing Segment
The Gathering and Processing segment includes the gathering, processing, and sale of natural gas and natural gas liquids (NGLs). Revenues from this segment are primarily derived from:
- Natural gas sales, which amounted to $821.7 million for the nine months ended September 30, 2024, compared to $1,835.9 million in 2023.
- NGL sales totaling $9,024.7 million for 2024, up from $7,651.6 million in 2023.
- Condensate and crude oil sales reaching $405.5 million in 2024, compared to $393.1 million in 2023.
Logistics and Transportation Segment
This segment focuses on the transportation, storage, and fractionation of NGLs. Key revenue sources include:
- Gathering and processing fees, which generated $1,218.0 million in 2024, up from $966.3 million in 2023.
- NGL transportation, fractionation, and services, which contributed $221.5 million in 2024, increasing from $190.5 million in 2023.
- Storage, terminaling, and export services generating $362.3 million, compared to $302.3 million in 2023.
Operating Performance
For the three months ended September 30, 2024, the operating margins by segment were as follows:
| Segment | Operating Margin (in millions) |
|---|---|
| Gathering and Processing | $584.3 |
| Logistics and Transportation | $619.2 |
| Other | ($17.7) |
| Total Operating Margin | $1,185.8 |
Expenses
Operating expenses for Targa Resources have also varied, with the following figures reported:
- Operating expenses for the nine months ended September 30, 2024, were $869.7 million, compared to $808.4 million in 2023.
- Depreciation and amortization expenses increased to $1,044.5 million in 2024 from $988.2 million in 2023.
- General and administrative expenses rose to $287.4 million in 2024 from $253.4 million in 2023.
Net Income
Targa Resources reported the following net income figures:
| Period | Net Income (in millions) | 2024 | 2023 |
|---|---|---|---|
| Three Months Ended September 30 | $387.4 | $220.0 | +76% |
| Nine Months Ended September 30 | $961.0 | $1,046.3 | -8% |
Cash Flow
The company's cash flow metrics for the nine months ended September 30, 2024, are summarized as follows:
| Metric | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Adjusted EBITDA | $3,020.3 | $2,570.1 |
| Adjusted Cash Flow from Operations | $2,431.7 | $2,060.6 |
| Adjusted Free Cash Flow | $84.2 | $319.1 |
Capital Expenditures
Targa Resources has committed to significant capital expenditures to support its operations:
| Period | Capital Expenditures (in millions) |
|---|---|
| Nine Months Ended September 30, 2024 | $2,323.9 |
| Nine Months Ended September 30, 2023 | $1,742.2 |
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Resources:
- Targa Resources Corp. (TRGP) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Targa Resources Corp. (TRGP)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Targa Resources Corp. (TRGP)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.